TECH SUPPLIER Jun 2021 - Market Perspective - Doc # CA46290421

Canadian Communications Service Provider Capex Spending, 2020–2021


Lawrence Surtees
Table of Contents

Executive Snapshot

Figure: Executive Snapshot: Canadian Communications Service Provider Capex Spending, 2020–2021

New Market Developments and Dynamics



Global View

Figure: Global Telecom Service Provider Capital Expenditures, 2006-2020

Canadian Communications SPs Capital Spending in 2020

Figure: Canadian Telecom Service Provider Revenue Versus Capex (Excluding Cable Companies), 2008-2020 (C$M)

Figure: Canadian Telecom Services Capital Expenditures (Excluding Cable Companies), 2006-2020 (C$M)

Table: Canadian Telecom Service Providers Capex Budget Variances by Company, January to December 2020 (C$M)

Figure: Canadian Telecom Provider Capex Budget Changes, 2020 (C$M)

Figure: Canadian ILEC Capital Intensity Ratios, 2020 (Capex as Percentage of Revenue)

Figure: Canadian Communications Service Provider Revenue and Capital Expenditures, 2008–2020 (C$M)

Top Investment Priorities

Industry Dynamics

Accelerated Capital Cost Tax Allowance

Assessment of Future Directions: Key Network Capex Drivers

Figure: Enabling Technologies of Industry 4.0

Figure: NGN Technologies Enable Enterprise Vertical Market Digital Transformation

Communications SP Network Transformations in Progress

The Need for Bandwidth and the Optical Imperative

Global IP Traffic Growth and COVID-19 Pandemic

Figure: Worldwide Global DataSphere, 2020–2025 (ZB)

IP VPN and Metro Ethernet

Table: Canadian Metro Ethernet Providers' Optical Equipment Vendors, 2020

From 100G to 400G Optical Backbones

Figure: Canadian Principal Fibre-Optic Backbone Routes, 2020
Table: Major Canadian Fibre-Optic Network Route Length, 2020
Table: Canadian Optical Network Providers' Equipment Vendors, 2021

Undersea Fibre Links Proposed for Nunavut

Table: Comparison of Backbone Communication Infrastructures

Federal Government Broadband Fund Stimulates Projects

Fibre-to-the-Home Programs Accelerate

Figure: Comparison of Telecom and Cable Broadband Technologies

Cloud Computing and Datacentres

Software-Defined Networks and Network Virtualization

Network Function Virtualization

Figure: Next-Generation Network Technology Building Blocks

Facebook's Next-Gen TIP Carrier Initiative

SDN Tied to Big Data and Analytics and Artificial Intelligence

Wireless Broadband at Gigabit Speed

4G LTE at Metro Ethernet Speed

Figure: Wireless Network Speed Evolution to 5G

5G, SDN, and the 3rd Platform

Figure: 5G Infrastructure Built on SDN and NFV
Figure: 5G Network Slice API-Enabled Ecosystem

Telus Implements Cloud Automation Slicing Technology with DZS

Multi-Access Edge Computing

Figure: Multi-Access Edge Computing and IoT

Millimeter Wave Technology Key to 5G

Figure: Wireless 5G Millimeter Wave Frequency Spectrum
Figure: Trade-Offs of 5G Wireless Frequency Bands

Public 5G and Private Wi-Fi 6 Go Hand in Hand

Wireless Private 5G Networks and Wi-Fi 6

Improved Latency Key Benefit of 5G Millimeter Wave Frequencies

Figure: Wireless Latency Based on Location of Network Element

Key 5G Spectrum Auction Pending

Figure: Canadian 5G Wireless Priority 1 Spectrum Release Timing, 2018–2022

Radio Head Cell Tower Technology

Figure: Canadian Cell Tower Counts for Major Canadian Wireless Providers, June 2019-November 2020 (Monthly)
Table: Canadian Cell Sites by Carrier, November 2020
Table: Canadian Wireless Providers' Equipment Vendors, 2021
Figure: Big 3 Incumbent Wireless and 5G Networks Coverage, 2020

6G Already Looms

Federal and Québec Government Support Telesat LEO Satellite Project

Figure: Proposed LEO Satellite Constellations with Coverage of Canada

Capex 2021 Forecast and Assumptions

Impact of COVID-19 Pandemic

COVID and Remote Work

Figure: Proportion of Canadian Employees Requiring Home Access Before, During, and After the COVID-19 Pandemic by Firm Size (% All Respondents)

Figure: COVID-19 Spurs Important New ICT Investments

Capex by Segment and Vendor Profiles

Figure: Canadian Telecom Service Provider Revenue and Capex, 2007-2021

Figure: Canadian Telecom Services Capex Annual Change, 2006–2021 (%)

Table: Canadian Telecom Capital Expenditures by Company, 2010-2021 (C$M)

Figure: Canadian Telecom Capex by Segment, 2007-2021

Figure: Canadian Wireline Versus Wireless Capex, 2007-2021 (C$M)

Figure: Canadian Top Telecom Capital Spenders, 2006–2021

Incumbent Local Exchange Carriers

Figure: Canadian ILEC Wireline Capex, 2006–2021

Figure: Canadian ILEC and Total Capex Annual Budget Changes, 2006–2021

Figure: Canadian ILEC Wireline and Wireless Capital Intensity Ratio, 2007–2021

Table: Canadian ILEC Wireline Capex, 2010-2021 (C$M)

Bell Canada

Figure: Bell Canada ILEC Wireline Capex and Capital Intensity Ratio, 2006–2021
Figure: Bell Canada Fibre-Optic Footprint, Locations Passed, 2016–2020 (M)
Figure: Bell Canada Business Markets Integrated Network Portfolio and Virtual Network Service Platform


Table: Telus Capital Expenditure by Province, 2019-2021 (C$M)


Interexchange and Competitive Local Exchange Carriers

Figure: Canadian IXC/CLEC Capital Expenditure, 2006–2021

Table: Canadian IXC and CLEC Capex, 2010-2021 (C$M)

Figure: Canadian IXC/CLEC Segment and Total Capex Annual Budget Change, 2006-2021 (%)

Digital Colony (Allstream)

Figure: Digital Colony (Allstream) Revenue and Capex, 2002–2021

Digital Colony (Aptum Technologies)

AT&T Global Services

Rogers For Business



Primus Canada


Figure: Canadian Wireless Capex, 2006–2021

Figure: Canadian Wireless Revenue Versus Capex, 2006–2021

Figure: Canadian Wireless and Telecom Capex Annual Budget Change, 2006–2021

Table: Canadian Wireless Service Provider Capex, 2010-2021 (C$M)

Rogers Wireless

Figure: Rogers Wireless Initial 5G Non-Standalone Rollout, 2020

Rogers-Shaw Hookup Pegged to 5G Capex

Bell Mobility

Figure: Bell Mobility 3G and 4G Network Peak Speeds, 2006–2020

Telus Mobility

SaskTel Wireless

Vidéotron Wireless


Shaw Freedom Mobile

SSi Mobile

TeraGo Networks

Cable Companies

Table: Canadian Cable Company Capex Budgets, 2010-2021 (C$M)

Figure: Canadian Cable Company Capex Spending, 2006–2021

Rogers Cable

Figure: Top 5 Canadian Telecom Capex Spenders, 2005–2021

Shaw Cable

Vidéotron Cable

Cogeco Connexion

Eastlink Cable

Canadian Communications Capex

Figure: Canadian Communications Service Provider Revenue Versus Capex, 2009–2021

Figure: Canadian Communications Services Capital Expenditure, 2006–2021

Table: Canadian Telecom Capex Spending (Including Cable) by Company, 2010-2021 (C$M)

Figure: Canadian Communications Capex by Segment, 2006–2021

Final Frontier: The Back Office

Figure: Capex Spending Infrastructure Versus Back Office, 2021

Figure: Evolution of Communications Service Provider OSS-BSS Operations and Monetization

Figure: Communications SP Transformation with Network Automation with SDN and NFV

Advice for Service Providers

Learn More

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